RIL jumps over 2% as stake sale talks with Aramco gather pace
Shares of Reliance Industries gained over 2 per cent on Wednesday after reports suggested that the company's talks with Saudi Aramco to sell stake are gathering pace.
Bloomberg reported that Aramco officials and bankers on the deal have been working at Reliance's offices in Mumbai for due diligence this month.
Mukesh Ambani's Reliance is keen to sign a binding agreement before the next annual shareholders meeting, which is due to take place before the end of September.
Reliance in August valued its oil-to-chemicals division at $75 billion including debt, implying a $15 billion valuation for the 20 per cent stake. If the deal closes at this value, it will be the largest transaction in India since Walmart's $16 billion acquisition of a majority stake in Flipkart.
For Aramco, the deal could be its biggest since agreeing to buy a majority stake in Saudi Basic Chemicals for $69 billion last year.
Reliance has been trying to reduce its massive debts. The Indian conglomerate's debt stood at $43 billion at the end of December, according to its latest earnings statement.
Reliance has been selling assets from mobile-phone towers to a 49 per cent stake in its fuel-retail business to reduce leverage that's risen over the past few years as it poured money into new sectors such as telecommunications.
The stock jumped 2.46 per cent to Rs 1,502 on BSE. Year-to-date, it has fallen 0.73 per cent.
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